Has your company recently purchased energy efficient equipment?

Normally when a company purchases a capital asset the cost of the asset is claimed as capital allowances over the next 12 years, and in some cases may not even qualify for capital allowances. However, in the 2008 Finance Act Accelerated capital allowances of 100% in year of the expenditure incurred on the purchase of energy efficient equipment was introduced.

In order to qualify for these the following condition must be met:

Allowances are available to companies only.

Energy Efficient Equipment must be new.

The equipment must meet an energy efficient criteria and fall within one of the 10 classes of technology as listed in point 4.

The company is required to incur a minimum amount of expenditure on the equipment as follows:

Motors and Drives – €1,000

Lighting- €3,000

Building Energy Management Systems – €5,000

Information and Communications Technology – €1,000

Heating and electricity provision – €1,000

Process and heating ventilation and air-conditioning control systems – €1,000